1) Lightning Electronics is a midsize manufacturer of lithium batteries. The companys payroll records for the November 114 pay period show that employees earned wages totaling $67,000 but that employee income taxes totaling $10,400 and FICA taxes totaling $3,475 were withheld from this amount. The net pay was directly deposited into the employees bank accounts. Assume Lightning Electronics must also pay $420 of unemployment taxes for this pay period.

Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes.

2)

Simko Company issued $790,000, 8-year, 4 percent bonds on January 1, 2015. The bonds were issued for $730,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2015, and (b) the payment of interest on December 31, 2015.

3)

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Target Corporation is one of Americas largest general merchandise retailers. Each Christmas, Target builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, Target often collects cash from the sales several months after Christmas. Assume that on November 1, 2015, Target borrowed $7.1 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 9.00 percent payable at maturity. The accounting period ends December 31.

Complete the required journal entries to record the note on November 1, 2015, interest on the maturity date, April 30, 2016, assuming that interest has not been recorded since December 31, 2015.